In the base year, the relationship between nominal and real GDP is
a. uncertain.
b. one of equality.
c. real GDP is higher.
d. nominal GDP is higher.
B
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Which of the following would increase the consumption component of U.S. GDP?
A. A business purchases Disney World vacations as rewards for the firm's best salespeople. B. Disney World purchases tires for the monorail from a firm in Ohio. C. A French man purchases a vacation at a Disney theme park in France. D. You purchase a vacation at Disney World in Florida.
Which graph in the above figure represents the isoquants where, as the amount of labor used increases and the amount of capital used decreases, the marginal product of labor rises when Capital per day is on the vertical axis and Labor per day is on
the horizontal axis? A) Graph A B) Graph B C) Graph C D) Graph D
If two quick oil change companies agree that one company will purchase locations in rural and suburban areas and the other company will purchase locations in the urban areas, this is an example of ________.
A) bid rigging B) price fixing C) output restrictions D) market division
Which of the following is FALSE?
a. Maximizing division profits can sometimes lead to reducing company-wide profits b. Managers of profit centers are usually given a lot of discretion in their decision making c. Profit centers usually require the highest degree of attention by corporate headquarters d. A manager being rewarded on division revenues has the most incentive to make good decisions for his division